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Updated on November 16, 2016

Bureau of Environment

Tokyo Cap-and-Trade Program: All covered facilities achieve their CO2 emission reductions for the first compliance period

In order to promote the reduction of greenhouse gas emissions within Tokyo with the goal of becoming the city with the lowest environmental impact in the world, in fiscal 2010 the Tokyo Metropolitan Government (TMG) launched the cap-and-trade program for large-scale business facilities based on the Tokyo Metropolitan Environmental Security Ordinance.

The end of September 2016 was the deadline for meeting the obligations of the first compliance period. All covered facilities have achieved their total emissions caps for this period.

Overview of the program

This program makes it mandatory for covered facilities to reduce their total carbon dioxide emissions.
Facilities can meet their obligations by reducing emissions themselves through energy efficiency measures or by purchasing credits such as excess emission reductions from other facilities.

First Compliance Period:

FY 2010 to FY 2014
Compliance factor: 8% or 6% reduction from base-year emissions
*Fulfillment deadline: end of September 2016

Second Compliance Period:

FY 2015 to FY 2019
Compliance factor: 17% or 15% reduction from base-year emissions
*Fulfillment deadline: end of September 2021

How obligations were met

  • Significant reductions were made through proactive efforts to save energy, such as introducing LED lighting, and 90% of the facilities were able to meet their reduction targets through such initiatives.
  • The remaining 10% of the facilities were able to meet their reduction targets through emissions trading.

1st Compliance Period
Achievement of Emission Reduction Targets

Breakdown of Credit Used to Meet Reduction Targets*1

*1 Emissions trading per facility averaged 1,500 t-CO2

*2 The TMG has concluded an agreement with Saitama Prefecture, which has also introduced a emissions trading system, making it possible to trade credits between the two jurisdictions.

Tokyo Cap -and-Trade Program

Reference (PDF:486KB)


Emission Cap and Trade Section, Climate Change & Energy Division, Bureau of Environment

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